What refers to amounts that the corporation must pay to suppliers in the future?

Accounts payable refers specifically to the amounts that a corporation is obligated to pay to its suppliers in the future for goods or services received but not yet paid for. It is considered a liability on the balance sheet. When a company purchases goods or services on credit, it creates a promise to pay the supplier later, and until that payment is made, the owed amount is recorded as accounts payable.

This distinction is important in financial statement analysis because accounts payable is a key component of working capital and affects a company's liquidity. Analyzing accounts payable can provide insights into the company's credit terms, supplier relationships, and cash flow management. Understanding these amounts helps stakeholders ascertain the financial health of a business and its ability to meet short-term obligations.